The Voltron initiative – built on R3’s Corda blockchain platform – has completed its global trials with more than 50 banks spread across 27 countries in six continents.
The news was announced by R3 in a blog post. The Voltron initiative global trials saw banks and corporates participate in the simulation of multiple digital ‘Letter of Credit’ transactions.
Voltron utilises blockchain technology to reduce the time it takes to execute the full process of previously paper-based Letters of Credit from 5-to-10 days to less than 24 hours.
Reportedly, 96% of participants in the trial said Voltron will accelerate their Letter of Credit process, improve efficiencies, and reduce cost.
The announcement proceeds to detail how traditional finance trade processes are predominantly paper-based, time-consuming, and prone to risk.
According to a survey of trial participants cited by R3, 86% of firms believe such inefficiencies are increasingly becoming “intolerable” for both corporates and banks. Consequently, 61% said they are likely to move trade flows to “open accounts” – reportedly a far more risky option for exporters.
The trial was carried out by a partnership of Bain, CryptoBLK, and Microsoft’s Azure cloud platform.
The announcement reads: “This trial builds on a number of successful live transactions on Voltron in 2018 and earlier this year. The transactions demonstrated the improved speed and readability of Letters of Credit.”
The Voltron application, designed and built to be compatible with both Corda and Corda Enterprise, will reportedly replace complex links and networks involved in the trade finance market by providing a shared and synchronised database of transactions between businesses across the world.
“This digital alternative is significantly faster, more reliable, and more cost-effective than current paper-based systems, reducing fraud risk and removing time-consuming reconciliation processes by providing a single, immutable record of a trade,” claims R3.
Interested in reading more R3-related stories? Discover more about the Wall Street Blockchain Alliance’s partnership with R3 to help promote the adoption of its Corda platform.